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Capital gains tax in Luxembourg 2026
Hold shares, bonds or funds more than 6 months and Luxembourg taxes the private gain at 0% — the speculation rules catch only disposals within 6 months (full progressive rates, above a €500 yearly threshold).
Stakes above 10% stay taxable whenever sold, but at half your average rate with a €50,000 allowance per decade.
Property runs on its own clock: your main home is exempt, and other real estate held past the holding window is taxed at half your average rate.
At a glance
- top rate
- 45.78% (speculative, within 6 months); ≈ 22.9% max (half average rate)
- entry band
- 0% — movable assets held over 6 months (stakes ≤10%)
- tax year basis
- Calendar year
- filing deadline
- Via the annual return
- residency basis
- Residents: worldwide gains
- regime flag
- Step-up for arriving residents wipes out pre-arrival share gains
Rates
Capital gains by asset and holding period (2026)
| Rate | Base | Applies to |
|---|---|---|
| 0% | — | Movable assets (shares, funds, bonds) held over 6 months, stakes of 10% or less |
| Progressive rates (to 45.78%) | Full gain | Movable assets sold within 6 months — exempt if the year's speculative gains stay under €500 |
| Half your average rate | Gain after allowances | Stakes above 10% sold after 6 months; property held beyond the speculation window (5 years for recent sales; formerly 2) |
| Progressive rates | Full gain | Property sold inside the speculation window |
| 0% | — | Your main residence (5 years' occupation, or moves forced by work/family) |
Thresholds & allowances
- Ten-year allowance€50,000 (€100,000 joint) against non-speculative gains
Plus €75,000 per spouse for a parental home acquired by inheritance
- Business cessation€10,000 allowance (€25,000 with property), taxed at half the average rate
On selling a whole business or partnership share
Residency
Residency trigger
Residents owe tax on worldwide gains under these rules. Newcomers get a step-up: shares in 10%+ participations are rebased to value on arrival, so pre-Luxembourg growth is never taxed here.
Non-resident treatment
Non-residents are taxed only on Luxembourg property gains and on 10%+ stakes in Luxembourg companies sold within 6 months (or later, only by former long-term residents who left within 5 years).
Notes
- Speculative losses offset only speculative gains of the same year.
- A temporary regime taxed long-held property gains at a quarter of the average rate through mid-2025 to stimulate housing sales; the standard half-rate has since resumed with a 5-year holding condition.
- Gains rolled into replacement rental housing could be transferred tax-neutrally under 2024–2026 transition rules.
- Half 'your average rate' means half the average tax rate on your total income — for top earners roughly 22.9% including the surcharge.
FAQ
Does Luxembourg tax capital gains on shares?
Not for private investors who hold more than 6 months with stakes of 10% or less — those gains are 0%. Quick flips within 6 months pay full progressive rates (above €500 a year), and 10%+ stakes pay half your average rate with a €50,000 ten-year allowance.
How is property taxed when sold in Luxembourg?
Your main home is exempt. Other property sold inside the speculation window pays full rates; beyond it, half your average tax rate applies — with the €50,000 decade allowance shrinking the base.
Figures: tax year 2026, compiled from public sources. Not tax advice.